Bangkok, The Cabinet agreed to help with living expenses by reducing the price of gasohol 91 at the rate of 2.50 baht/liter for 3 months, starting on Nov. 7, using measures to reduce both the gasoline tax to the remaining 1 baht/liter. It is subsidized by the Oil Fund. As for the price of other gasoline groups Will it be reduced according to the tax rate or not? It's not yet decided. In total, the policy is to reduce taxes for 3 months for both diesel and gasoline. The government lost more than 17 billion baht in revenue.
Mr. Peeraphan Saleerathavipak, Deputy Prime Minister and Minister of Energy, revealed that the Cabinet meeting today (Oct. 31) approved guidelines for further reducing people's living costs. As the Ministry of Energy proposes to reduce the price of gasohol 91 by 2.50 baht/liter for 3 months, starting 7 Nov., the operational guidelines include:
1. Reducing the excise tax for gasoline to 1 baht per liter from the current rate of 6.50 baht per liter, resulting in reductions in all types of gasoline and gasohol. Descending according to the mixture ratio of gasoline, such as E 10 (Gasohol 91, 95) tax collection is reduced by 90 satang/liter, E 20 is reduced by 80 satang/liter, E 85 is reduced by 15 satang per liter.
2. Reduction of the fuel fund By how much the rate will be reduced, the Fund will consider the overall oil price situation on Nov. 6 and make a new announcement, effective Nov. 7. When combined with the tax reduction, it will cause Gasohol 91 to decrease. Down 2.50 baht/liter
“The Cabinet agreed to reduce the excise tax on gasoline by 1 baht per liter. Therefore, for gasohol 91, the tax was reduced by 90 satang. We had talked about reducing it by 2.50 baht, which was missing by 1.60 baht. The Ministry of Finance suggested that the oil fund Fuel goes to additional management I am trying to increase it in time for November 7th,” Mr. Peeraphan said.
Mr. Kritsada Chinavicharana, Deputy Minister of Finance, said that the reduction of the excise tax rate on gasoline this time. Initially, it will cause the government to lose approximately 2,000 million baht in revenue.
Thailand's use of gasoline in January - August 2023 averaged at 31.91 million liters/day, an increase of 5.5 percent from the same period last year. Gasohol 95 use increased to 18.10 million liters/day. and gasohol E20 increased to 5.94 million liters/day, while the use of gasohol 91, gasohol E85, and gasoline decreased to 6.83 million liters/day, 0.19 million liters. /day and 0.47 million liters/day, respectively.
As for the Fuel Fund, most recently (Oct. 29), it is still negative by more than 74,292 million baht, separated into the oil account with a negative value of more than 28,938 million baht and the cooking gas (LPG) account with a negative value of 45,354 million baht. Therefore, in the case of additional subsidies for oil Gasohol 91 will have an additional effect on the fund's burden. According to the public debt management plan for 2023, a total of 105,333 million baht will be borrowed from financial institutions, which the Fund has gradually borrowed according to the plan. To subsidize both energy, oil and cooking oil prices according to government policy. As for the price of other gasoline groups Will it be reduced according to the reduced tax rate or not? It will look at the burden of the fund and the price of oil in the world market.
Previously, the Cabinet agreed to reduce the price of diesel fuel by 2 baht/liter to 29.94 baht per liter, effective September 20, 2023, by reducing the excise tax on diesel fuel to 2.50 baht per liter for 3 months, starting from September 20. Sep. - 31 Dec. 2023, with Thailand using approximately 70 million liters of diesel per day. causing the government to lose approximately 15,000 million baht in revenue
Thai Oil Public Company Limited reports that crude oil prices closed yesterday (30 Oct.) falling heavily. After investors assessed the latest situation that the war between Israel and Gaza may not affect oil supply in the Middle East. Even though Israel has launched ground offensive operations in the Gaza Strip,
Reporters reported that Events in the Middle East are still unreliable. Many organizations have issued warnings, such as the World Bank (World Bank), indicating that crude oil prices may soar to a record high of $150 per barrel (45.27 baht per liter) if it escalates into a full-scale war in the Middle East. This had already happened when Arab countries boycotted the West in 1973. Bank of America analysts assess three scenarios if the war were to include attacks on infrastructure. Oil shipments were halted until the worst of Iran's involvement in the war. Blocking the Strait of Hormuz The price will be 130-250 dollars/barrel.
Source: Thai News Agency